Hello helpful mortgage brokers out there!
Hopefully a quick and easy question…..
Looking at a property in rural NSW. Six residential units and three shops in the one property parcel. Purchase price would be around $400k. Would look to purchase in our discretionary trust.
Q1 – would the loan need to be commercial, or could it be done as a residential?
Q2 – would I be able to get an 80% lend on the property? The agent is suggesting because of the commercial component I am unlikely to be able to borrow more than 70% against the property.
Thanks,
Craig.Hi Craig
When you say you are buying them as 1 parcel are they all on the same Title or are you just buying them all together.
If they are one 1 Title then you are unlikely to get more than 70-75% depending on the purchase price.
And Yes if one 1 Title the loan will need to be considered as a Commercial loan.
Richard Taylor | Australia's leading private lender
Hi Richard,
Thanks for that. Yep, one title.
Craig.
Agree with Richard. Max lend 75%.
Depending on the rental returns etc, I can get you up to 80-85%.
Mixed use is no problem.Email me at [email protected] if you would like some additional information.
If the property is rural NSW then there is only a few major lenders who you can use. once there is income being generated in this property / ies then it must come under business or commercial banking. Business bankers tend to work with the owner/client so you build up a working relationship and understand theups & downs of cash flow in a business. They will still treat the lend with mixed though ie. resi units still lend under resi & shops etc under business but the costs / fees can often be higher than normal resi lending. They are all tax deductible though. Interest rates are usually 1-1.5% above residential lending (approx 9.6% + at present) although CBA business have a special on at present with nil est. fees for some jobs!
Hope this helps?
[email protected]
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